Terra has not too long ago made many headlines attributable to its meteoric positive factors. Sadly, this will often result in affirmation bias in how we view the stats behind our most beloved crypto belongings.
When you’ve been studying across the cryptosphere this week, you may be forgiven for believing that Terra is now the second-largest asset by staking worth. For instance, stakingrewards.com tweeted this week how Terra has overtaken Ethereum 2.0 staking.
— Staking Rewards (@StakingRewards) March 1, 2022
While it’s true that Terra has seen a rise within the staked worth in $USD over the previous few weeks, this doesn’t inform the entire story.
Staked Luna down 416 million from ATH
Most individuals solely have a look at crypto charts in $USD, making it simpler to grasp in ‘actual world’ phrases. Nonetheless, if we have a look at the present worth of Terra staked in $USD, we’re at present at an all-time excessive of round $25 billion. This paints an image that buyers are extra bullish than ever on staking Terra.
Nonetheless, after we look as an alternative on the precise quantity of Terra staked, we get a very totally different story.
The all-time excessive for the quantity of Terra staked was again in July 2021 at round 667 million Terra while immediately’s TVL sits at simply 280 million Terra. If we zoom in additional, it worsens as we’re not even at an area excessive, with the locked worth dropping 19% since February 18.
This doesn’t instill the arrogance that different headlines focusing solely on the $USD worth are purporting. Nonetheless, whether or not buyers are unstaking to take earnings from the current 78% positive factors is anybody’s guess at this stage.
Has Luna overtaken ETH2.0?
Now, let’s have a look at the info that helps the idea that Terra has overtaken ETH2.0 staking. As we will see, this primary chart from stakingrewards.com does in reality present Terra forward of ETH2.0 and second solely to Solana.
Nonetheless, an identical chart from defillama.com means that Ethereum has over $100b extra in locked worth and, in reality, Terra is forward of Solana by fairly some margin.
So. How can this be? Maybe, there’s a conspiracy to make Ethereum look inferior by some events? Is one dashboard extra dependable than the opposite?
The brief reply is not any. DeFI Llama seems at greater than Eth2.0 staking when calculating TVL figures. For instance, the than its counterpart, which possible explains the distinction in reported complete staking worth.
It’s important to look past simply the $USD worth when assessing crypto belongings. A pump corresponding to that skilled by Luna will trigger a correlating surge in staking values for the asset in query. In consequence, staking outflows can cover from the untrained eye. Moreover, not all dashboards use the identical information, so there is usually a lot to be discovered by exploring totally different platforms.
That includes a abstract of an important every day tales on this planet of crypto, DeFi, NFTs and extra.